What is CarGurus, Inc.'s lease impairment?

CarGurus, Inc. (CARG) reported lease impairment of $14.7M in Q1 2026.

What does lease impairment mean?

Reflects the write-down of right-of-use assets associated with operating leases when the expected future utility of the leased space or equipment declines. This metric indicates potential inefficiencies in real estate or equipment utilization. It serves as a warning sign for management's ability to optimize its physical footprint and lease commitments.

CarGurus, Inc. CARG Lease impairment

Lease impairment at other companies

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$233K+195%

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$0-100%

Other financials

Income statement

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Revenue$243.6M+14.8%

Gross profit$224.6M+13.5%

Operating income$40.1M-20.9%

Net income$32.2M-17.5%

EPS (diluted)$0.34-8.1%

Balance sheet

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Cash & equivalents$72.0M-58.3%

Total debt$188.0M-3.8%

Total equity$237.1M-41.0%

Total assets$519.6M-24.6%

Cash flow

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Operating cash flow$69.8M+2.9%

CapEx$391.0K-82.5%

Free cash flow$69.5M+5.8%

Valuation

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Market cap$2.75B+6.6%

Enterprise value$2.86B+9.6%

P/E18.4×-48.1×

P/S2.9×-0.2×

Profitability

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Gross margin90.2%+4.0pp

Operating margin25.4%+3.4pp

Net margin15.9%+11.2pp

FCF margin31.2%+4.1pp

Returns & leverage

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Return on equity46.6%+38.7pp

Debt / equity0.8×+0.3×

Current ratio1.7×-1.0×

Where this comes from

Reported directly by CarGurus, Inc. in its filing.

Tagged under the XBRL concept us-gaap:OperatingLeaseImpairmentLoss.

The official record: CarGurus, Inc.’s 10-Q, filed May 7, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is CarGurus, Inc.'s lease impairment?: CarGurus, Inc. (CARG) reported lease impairment of $14.7M in Q1 2026.
What does lease impairment mean?: Reflects the write-down of right-of-use assets associated with operating leases when the expected future utility of the leased space or equipment declines. This metric indicates potential inefficiencies in real estate or equipment utilization. It serves as a warning sign for management's ability to optimize its physical footprint and lease commitments.